Landec Corp Ca (LNDC) 10-Q Quarterly Report October 2020

SANTA MARIA, CA – October 6, 2020 - Landec Corporation (Nasdaq: LNDC), a diversified health and wellness company with two operating businesses, Curation Foods, Inc. and Lifecore Biomedical, Inc., reported results for the fiscal 2021 first quarter ended August 30, 2020. Looking forward, Landec intends to create further stockholder value by delivering against its long-term financial targets, strengthening its balance sheet, selectively investing in innovation and growth, and implementing strategic priorities to improve operating margins at Curation Foods and driving topline growth at Lifecore

FISCAL FIRST QUARTER 2021 BUSINESS HIGHLIGHTS:

•Revenues of $135.6 million, a planned decrease of 2.2% year-over-year

•Gross profit of $16.3 million, an increase of 6.6% year-over-year

•Net loss of $11.0 million, which includes $7.8 million of restructuring and other non-recurring charges, net of tax

•Diluted net loss per share of $0.38; adjusted diluted net loss per share of $0.11, which excludes $0.27 per share of restructuring and other non-recurring charges, net of tax

•Adjusted EBITDA of $3.1 million, which excludes $10.6 million of restructuring and other non-recurring charges

•Completed the asset sale and exited the lease of its pre-operational salad dressing manufacturing facility based in Ontario, California for $4.9 million on August 7, 2020

•Entered into a definitive agreement to sell the Company’s Hanover manufacturing facility and related assets for an aggregate purchase price of $8.7 million, which was subsequently completed on September 4, 2020

CEO COMMENTS:

“We are pleased with our strong performance in the fiscal first quarter which demonstrates the progress in our operational execution that is the product of our hard work in optimizing our business operations during fiscal 2020,” said Dr. Albert Bolles, Landec’s President and CEO. “Notably in the first quarter, year-over-year, while revenues decreased 2%, gross profit increased nearly 7% and adjusted EBITDA increased 890%. We remain committed to continuing to improve our balance sheet and maximizing value across our portfolio of businesses. We continue to be focused on generating profitable growth through operational excellence and innovation driven by customer and consumer insights. This starts with our Lifecore segment, where we are supporting its business development pipeline and advancing commercialization of key projects to drive consistent double-digit growth. Within our Curation Foods business, we are building upon the series of decisive actions associated with Project SWIFT that has improved the segment’s financial performance and we believe provides a foundation for profitable long-term growth.”

The following information was filed by Landec Corp Ca (LNDC) on Tuesday, October 6, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Landec Corp Ca's 10-Q Quarterly Report:

Financial - Earnings Highlight
Lifecore The increase in gross profit for the Lifecore business for the three months ended August 30, 2020, compared to the same period last year, was due primarily to the increased revenue in both CDMO and fermentation, as well as a favorable sales mix.

Revenue - Product Highlight
Net cash provided by investing activities during the three months ended August 30, 2020, was primarily due to the receipt of $4.9 million related to the sale of the Company's Ontario, California facility, offset by the purchase of $4.6 million of equipment to support the growth of the Company's Curation Foods and Lifecore businesses.
Financial - Expense Highlight
The Company includes in cost of sales all of the following costs: raw materials (including produce, seeds, packaging, syringes and fermentation and purification supplies), direct labor, overhead (including indirect labor, depreciation, and facility-related costs) and shipping and shipping-related costs.
Financial - Expense Highlight
-27- Table of Contents Interest Expense The increase in interest expense for the three months ended August 30, 2020, compared to the same period last year, was primarily a result of an increase in total debt from $165.1 million as of August 25, 2019 to $173.9 million, and related increases in deferred financing costs, as of August 30, 2020.
Financial - Expense Highlight
The Yucatan Foods business added a double-digit growth platform, a lower-cost infrastructure in Mexico, and higher margin product offerings that generally exhibit less sourcing volatility.
Revenue - Product
-25- Table of Contents Curation...Read more
Other - Other
The Credit Agreement contains customary...Read more
Other - Other
Liquidity and Capital Resources As...Read more
Other - Other
Note 1 - Organization, Basis...Read more
Financial - Dividend
Other: Dividend Income Dividend income...Read more
Revenue - Product
Expand medical applications for HA:...Read more
Financial - Earnings
Curation Foods The decrease in...Read more
Financial - Earnings
During fiscal 2019, the Company...Read more
Financial - Income
Interest Income The decrease in...Read more
Financial - Expense
-26- Table of Contents The...Read more
Financial - Expense
The increase in SG&A expenses...Read more
Financial - Expense
The Company believes that Windset's...Read more
Revenue - Product
Lifecore The increase in Lifecore's...Read more
Financial - Debt
On March 19, 2020, the...Read more
Other - Other
All forward-looking statements attributable to...Read more
Other - Other
While we believe that our...Read more
Other - Other
-24- Table of Contents Utilize...Read more
Financial - Earnings
Gross Profit: There are numerous...Read more
Other - Other
Curation Foods Curation Foods Overview...Read more
Revenue - Product
The COVID-19 pandemic as well...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Landec Corp Ca provided additional information to their SEC Filing as exhibits

Exhibit 10.1: Material Contract

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Ticker: LNDC
CIK: 1005286
Form Type: 10-Q Quarterly Report
Accession Number: 0001005286-20-000020
Submitted to the SEC: Wed Oct 07 2020 3:53:56 PM EST
Accepted by the SEC: Wed Oct 07 2020
Period: Sunday, August 30, 2020
Industry: Canned Fruits Veg Preserves Jams And Jellies